Having been working remotely for 4 years, I humbly think that working remotely alone is great for focused, deep work, but it is not ideal for communication, which are both required for optimum productivity for a software development team (obviously a one-person-team would be the exception).
Ideally a working space should be just big enough for the development team to sit close to each other, but should allow offices with doors for the team members to do their focused work a few hours a day.